Connecticut is gearing up to become the first state in the US to officially hand out baby bond trusts worth $3,200 to every child born into poverty.
The news will reportedly narrow or close the big racial wealth gap present in the state, with many critics commending authorities for taking such a smart and bold move in the right direction.
Research and statistics reveal how the state is renowned for having one of the highest levels of income inequality when compared to all other states in the nation. Hence, many refer to the problem as one that has been linked closely with the concept of racial inequality.
Therefore, from the first of July and onwards. all children that are born into poverty will now receive a bond worth $3,200, with full tax exemption being attached. Therefore, this means that the children will be able to gain full access to the bond, once they reach the age of 18 years. Moreover, the bonds will also need to be collected by the child, before the age of 30, confirmed local media outlets too.
Hence, this means that by the time the child has become 18, the value of the bond will then become $11,000, giving these young children a brighter and better future or shall we say a huge helping hand as they enter the adult world.
The funds will be intended for use in only a certain number of ways, that are designed to only provide benefit to the recipient attached.
For instance, it will reportedly cover the expenses relating to higher education costs, stating their own personal business venture, or perhaps for the purpose of purchasing a new home.
The news was announced by the state’s treasurer, Shawn T. Wooden, who went on to explain how the new bill would certainly address all the long-standing race as well as economic challenges relating to wealth disparities.
And that is by investing in a child that has been born into a poverty-stricken household, hence indirectly boosting the state’s economy as well.